Question : what is the risk borrowing home loan from a small and new bank?
I am having a traditional loan application with a big bank. I just found a small bank in Florida, founded in 2004, is offering better rate and cost compared to those big famous banks. The small bank is member of FDIC. Somebody told me small bank may not follow federal regulations. How do I tell if a bank is a qualified home loan lender that follows all lending regulations? What is the risk borrowing home loan from a small bank?
- asked by h.f.
All Answers:
Answer #1
There is no risk for you, you're the borrower. Aslong as you get the money at the rate, terms andfees you understand.
- answered by Rico
Answer #2
Unless you are borrowing on the i net you shouldknow ALL there is to know about the bank... Allbanks a member of the FDIC all one must do if youare not in there city go to FDIC.GOV AND CHECKTHEM OUT..... or call the banking commission...
- answered by greeter7
Answer #3
FDIC is great and all, but it has almost nothingto do with lending. FDIC means that they have aFederal Deposit Insurance Company protecting yourdeposits (checking, savings, CDs, IRAs, etc) inthe case of the bank going belly up. If the bankends up getting in trouble, they will sell yourloan off to another bank or financial institutionfor the capital. This can happen in large banksas well as small banks, especially the way theeconomy is right now.To test this small bank fortheir federal guidelines, when you walk in nexttime ask them where they have posted theirCommunity Reinvestment Act public notice. If theylook at you like they have to no idea what you aretalking about, walk back out the door and don'tlook back. If they have one, take a seat!!
- answered by wife of marine
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